Which of the following describes a negative externality?
a. A third party is negatively affected by a private transaction it was not part of.
b. A third party is positively affected by a private transaction it was not part of.
c. A party is negatively affected by a private transaction in which it took part.
d. A party is positively affected by a private transaction in which it took part.
a. A third party is negatively affected by a private transaction it was not part of.
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Capital, labor, and natural resources combine to produce goods and services. Which of the following will not lead to an increase in the ability of an economy to produce goods and services?
A) increased training for workers B) establishing a more productive technology C) new government restrictions on which technologies may be used to produce goods and services D) discovery of new oil reserves
The Keynesian AD curve differs from the classical AD curve in that:
a. the classical AD curve can shift in response to non-monetary shocks. b. the Keynesian AD curve can shift in response to monetary shocks. c. the Keynesian AD curve can shift in response to non-monetary shocks. d. there is no difference, both are determined by the quantity theory. e. none of the above.